Managerial Accounting

Hi CH Tutor! Please help me to answer these questions on a sheet of paper. We need the one-by-one solution for these. If you follow the instructions, I will give you positive feedback. Thank you.

Espion Corporation is studying a proposal that will yield a return of 12.00%. The financing of such project requires an investment of 120,000.00. The said investment requirement would be 40,000.00 of debt financing and 80,000.00 of equity financing in which 50,000.00 will be in form of issuance of ordinary shares while the balance is thru issuance of preference shares. The cost of debt is 9.50% while the stockholder requires a rate of return on their investment of 10.00% for ordinary shares and 15.00% for preference shares. The current tax rate is 30.00%. Compute:(Note express the answer in % form e.g. 7.11% )

Determine these 3 questions.

1. Cost of Debt

2. Cost of Equity

3. WACC